BOK Financial Reports Record Earnings of $351 Million for 2012 Fourth
Quarter Earnings Total $83 Million

January 30, 2013 08:00 AM Eastern Standard Time

TULSA, Okla.--(BUSINESS WIRE)--BOK Financial Corporation reported record net income of $351.2 million
or $5.13 per diluted share for the year ended December 31, 2012, up
$65.3 million or 23% over 2011. Net income for the year ended
December 31, 2011 was $285.9 million or $4.17 per diluted share.

“BOK Financial's results for 2012 reflect the value of our diversified
revenue business model,” said President and CEO Stan Lybarger.
“Non-interest revenue increased by $103 million or 20% over 2011, led by
tremendous growth in mortgage banking revenue. Our mortgage banking
professionals originated over $3.7 billion in loans, assisting a record
number of customers in the purchase or refinance of their home during
this year. In addition to mortgage banking revenue, brokerage and
trading revenue was up nearly $23 million over the previous year, which
more than offset the full year effect of regulatory limits on
interchange fees.”

"Our commercial loan portfolio grew by $1.1 billion or 16% and deposits
grew by $2.4 billion or 13% over December 31, 2011," said Lybarger.
"Additionally, continued improvements in credit quality in 2012 required
us to further reduce our combined allowances for credit losses by $45
million through net charge-offs and a $22 million negative provision for
credit losses."

"While persistently low interest rates and modest economic growth
present a challenge for all banks, including BOK Financial, we expect
the Company to continue to perform well," said Lybarger. "Our outlook
for the upcoming year includes continued loan growth, increased
non-interest revenue and operating expense discipline."

Net income for the fourth quarter of 2012 totaled $82.6 million or $1.21
per diluted share, compared to net income of $87.4 million or $1.27 per
diluted share for the third quarter of 2012 and net income of $67.0
million or $0.98 per diluted share for the fourth quarter of 2011.

Highlights of fourth quarter of 2012 included:

Net interest revenue totaled $173.4 million for the fourth quarter of
2012 compared to $176.0 million for the third quarter of 2012. Net
interest margin was 2.95% for the fourth quarter of 2012 and 3.12% for
the third quarter of 2012. Securities portfolio yield continued to
decline as cash flows were reinvested at lower rates.

Fees and commissions revenue totaled $165.8 million, largely unchanged
compared to the third quarter of 2012. Mortgage banking revenue
decreased $3.9 million compared to the prior quarter primarily due to
seasonal decreases in mortgage commitments and mortgage loans held for
sale. Trust fees and commission revenue increased $2.4 million over
the prior quarter. All other revenue sources were up $1.3 million over
the prior quarter.

A $14.0 million negative provision for credit losses was recorded in
the fourth quarter of 2012. Improving charge-off trends resulted in
lower estimated loss rates. Most economic factors are stable or
improving in our primary markets. No provision for credit losses was
recorded in the third quarter of 2012. Net charge-offs totaled $4.3
million or 0.14% of average loans on an annualized basis in the fourth
quarter of 2012 compared to net charge-offs of $5.7 million or 0.19%
of average loans on an annualized basis in the third quarter of 2012.
Gross charge-offs continue to decline, down $921 thousand from the
previous quarter.

The combined allowance for credit losses totaled $217 million or 1.77%
of outstanding loans at December 31, 2012 compared to $236 million or
1.99% of outstanding loans at September 30, 2012. Nonperforming assets
totaled $277 million or 2.23% of outstanding loans and repossessed
assets at December 31, 2012 and $264 million or 2.21% of outstanding
loans and repossessed assets at September 30, 2012. Nonperforming
assets increased $31 million due to the implementation of recent
regulatory guidance concerning borrowers who have filed for Chapter 7
bankruptcy. Excluding the impact of this new guidance, nonperforming
assets decreased $19 million during the fourth quarter of 2012.

Outstanding loan balances were $12.3 billion at December 31, 2012, up
$479 million over the prior quarter. Commercial loan balances grew by
$351 million or 19% on an annualized basis over September 30, 2012.
Commercial real estate loans grew by $68 million, residential mortgage
loans grew by $32 million and consumer loans grew by $28 million.

Period end deposits totaled $21.2 billion at December 31, 2012
compared to $19.1 billion at September 30, 2012. Demand deposit
accounts increased $1.2 billion and interest-bearing transaction
accounts increased $885 million, partially offset by a $54 million
decrease in time deposits.

Tangible common equity ratio was 9.25% at December 31, 2012 and 9.67%
at September 30, 2012. The tangible common equity ratio is a non-GAAP
measure of capital strength used by the Company and investors based on
shareholders' equity minus intangible assets and equity that does not
benefit common shareholders. The Company and its subsidiary bank
continue to exceed the regulatory definition of well capitalized. The
Company's Tier 1 capital ratios, as defined by banking regulations,
were 12.78% at December 31, 2012 and 13.21% at September 30, 2012.

The Company paid a regular quarterly cash dividend of $26 million or
$0.38 per common share and a special cash dividend of $68 million or
$1.00 per common share during the fourth quarter of 2012. On January
29, 2013, the board of directors approved a quarterly cash dividend of
$0.38 per common share payable on or about March 1, 2013 to
shareholders of record as of February 15, 2013.

Net Interest Revenue

Net interest revenue decreased $2.7 million compared to the third
quarter of 2012. Net interest margin was 2.95% for the fourth quarter of
2012 compared to 3.12% for the third quarter of 2012.

The yield on average earning assets decreased 17 basis points compared
to the prior quarter. The available for sale securities portfolio yield
decreased 28 basis points to 2.10% due primarily to the continued
reinvestment of cash flows from the portfolio at lower current rates.
The loan portfolio yield of 4.33% was unchanged compared to the previous
quarter.

"In the present low interest rate environment, our ability to further
decrease funding costs is limited," said Steven Nell, Chief Financial
Officer. "In addition, our ability to bolster near term net interest
revenue through continued securities portfolio growth may be constrained
by our conservative approach to interest rate risk management. We intend
to focus on supporting net interest revenue through continued loan
portfolio growth. Based on the current interest rate environment, we see
continued pressure on net interest margin in 2013."

Average earning assets increased $741 million during the fourth quarter
of 2012. The average balance of the available for sale securities
portfolio increased $424 million over the third quarter of 2012 due
primarily to growth in residential and commercial mortgage-backed
securities issued by U.S. government agencies. Average outstanding loans
increased $250 million due primarily to a $209 million increase in
commercial loan balances.

Average deposits increased $1.4 billion over the previous quarter.
Demand deposit balances were up $787 million and interest-bearing
transaction account balances increased $624 million. Time deposit
account balances decreased $59 million. The average balance of borrowed
funds decreased $328 million compared to the third quarter of 2012.

Fees and Commissions Revenue

Fees and commissions revenue totaled $165.8 million, largely unchanged
compared to the third quarter of 2012. Increased revenue from an
acquisition made during the third quarter was mostly offset by decreased
mortgage banking revenue.

Mortgage banking revenue totaled $46.4 million, down $3.9 million from
the prior quarter. Record mortgage loan production volume during the
fourth quarter was offset by a seasonal decrease in mortgage loan
commitments and loans held for sale. Residential mortgage loans funded
for sale totaled $1.1 billion for the fourth quarter of 2012, up $27
million or 3% over the previous quarter. Refinanced mortgage loans were
62% of loans originated for sale in the fourth quarter of 2012 compared
to 61% of the loans originated for sale in the third quarter of 2012.
Outstanding mortgage loan commitments decreased $95 million and the
unpaid principal balance of loans held for sale decreased $25 million
compared to September 30, 2012.

"Despite some industry forecasts of a reduction in mortgage lending
activity, we expect our mortgage banking revenue to remain strong in
2013," said Nell. "During 2012, we increased the number of mortgage
lenders, expanded further into our regional markets and added
correspondent loan origination channels. In addition, it does not appear
that government policies that stimulate mortgage lending will end
anytime soon. We also expect continued revenue growth from our wealth
management business in 2013 through a full year’s performance from our
Milestone acquisition and further expansion throughout our regional
markets."

Trust fees and commissions revenue were up $2.4 million primarily
related to revenue from The Milestone Group, Inc., a Denver-based
Registered Investment Adviser acquired by BOK Financial in the third
quarter. Brokerage and trading revenue increased $697 thousand,
transaction card revenue increased $221 thousand and deposit service
charges and fees decreased $974 thousand.

Operating Expenses

Total operating expenses were $222.1 million for the fourth quarter of
2012 compared to $222.3 million for the third quarter of 2012. Excluding
changes in the fair value of mortgage servicing rights, operating
expenses totaled $226.8 million, up $14.0 million over the third quarter
of 2012.

Personnel costs increased $8.4 million over the third quarter of 2012
due largely to increased incentive compensation and health care costs.
Incentive compensation expense increased $5.8 million. Stock-based
incentive compensation expense increased $4.8 million primarily due to
increased incentive compensation accruals for executive compensation
plans. Cash-based incentive compensation, which rewards employees as
they generate business opportunities for the Company by growing loans,
deposits, customer relationships or other measurable metrics, increased
$1.0 million. Employee health care costs increased $3.0 million over the
third quarter of 2012 primarily due to an increased level of large
dollar claims.

Non-personnel expense increased $5.6 million over the third quarter of
2012. During the fourth quarter, the Company made a $2.1 million
discretionary contribution to the BOKF Foundation. The BOKF Foundation
partners with various charitable organizations to support needs within
our communities. All other non-personnel expenses were up $3.5 million
over the previous quarter.

Loans, Deposits and Capital

Loans

Outstanding loans at December 31, 2012 were $12.3 billion, up $479
million over September 30, 2012. All categories of loans experienced
growth during the fourth quarter.

Outstanding commercial loan balances grew by $351 million or 19% on an
annualized basis over September 30, 2012. Outstanding balances were up
in most geographic markets, including $133 million in Oklahoma, $125
million in Texas, $46 million in Kansas/Missouri and $33 million in
Colorado. Service sector loans grew by $134 million primarily in the
Texas and Oklahoma markets. Energy sector loans increased $57 million.
Energy sector loans grew primarily in the Oklahoma and Colorado markets,
partially offset by a decrease in the Texas market. Healthcare sector
loans increased $56 million primarily in the Texas market.
Wholesale/retail sector loans increased $55 million primarily in the
Texas and Kansas/Missouri markets, partially offset by a decrease in the
Oklahoma market. Other commercial and industrial sector loans increased
$33 million and manufacturing sector loans increased $18 million both
primarily in the Oklahoma market. Unfunded energy loan commitments
increased $170 million during the fourth quarter to $2.4 billion. All
other unfunded commercial loan commitments totaled $3.2 billion at
December 31, 2012, up slightly from September 30, 2012.

Commercial real estate loans were up $68 million over September 30,
2012. Loans secured by industrial properties increased by $59 million
primarily in the Texas market. Other real estate loans increased $24
million. Growth in the Oklahoma and Colorado markets was partially
offset by a decrease in the Texas market. Loans secured by office
buildings were up $20 million primarily due to growth in the Texas
market, partially offset by a decrease in loans attributed to the
Oklahoma market. Growth in these loan classes was partially offset by a
$40 million decrease in construction and land development loans
primarily in the Oklahoma, Texas and Colorado markets. Unfunded
commercial real estate loan commitments totaled $621 million at
December 31, 2012, up $47 million over September 30, 2012.

Consumer loans increased $28 million from September 30, 2012. Other
consumer loans were up $40 million over September 30, 2012, partially
offset by a $13 million decrease primarily related to continued runoff
of indirect automobile loans resulting from the previously announced
decision to curtail that business in favor of a customer-focused direct
approach to consumer lending. Approximately $35 million of indirect
automobile loans remain outstanding at December 31, 2012.

Deposits

Deposits totaled $21.2 billion at December 31, 2012 compared to $19.1
billion at September 30, 2012. Demand deposit balances increased $1.2
billion. Interest-bearing transaction account balances increased $885
million and time deposits decreased $54 million. Among the lines of
business, commercial deposits increased $1.1 billion, wealth management
deposits increased $599 million and consumer deposits increased $80
million. Energy, commercial real estate, treasury services and small
business customer account balances all increased over the prior quarter.
Commercial customers continue to maintain high account balances due to
continued economic uncertainty and persistently low yields available on
high-quality investment alternatives. A significant driver of deposit
growth in the fourth quarter was sales of businesses or assets by
customers. During the first half of January 2013, demand deposit
balances decreased by approximately $700 million as customers redeployed
these funds.

The temporary unlimited deposit insurance coverage program for
noninterest-bearing transaction accounts at all FDIC-insured
institutions provided for by the Dodd-Frank Wall Street Reform and
Consumer Protection Act expired on December 31, 2012.
Noninterest-bearing transaction accounts are now insured up to $250,000.

Capital

The Company and its subsidiary bank exceeded the regulatory definition
of well capitalized at December 31, 2012. The Company's Tier 1 capital
ratio was 12.78% at December 31, 2012 and 13.21% at September 30, 2012.
The total capital ratio was 15.13% at December 31, 2012 and 15.71% at
September 30, 2012. In addition, the Company's tangible common equity
ratio, a non-GAAP measure, was 9.25% at December 31, 2012 and 9.67% at
September 30, 2012. Unrealized securities gains added 48 basis points to
the tangible common equity ratio at December 31, 2012. The decrease in
Tier 1, total and tangible common equity ratios was largely due to the
$1.00 per share special dividend paid in the fourth quarter.

"BOK Financial has increased cash dividends each year since paying its
first quarterly cash dividend in 2005," said Nell. "We will consider
migrating toward a higher regular dividend payout ratio in the future,
subject to attractive capital deployment opportunities."

In June 2012, banking regulators issued a Notice of Proposed Rulemaking
that will incorporate Basel III capital changes for substantially all
U.S. banking organizations. If adopted as proposed, these changes will
establish a 7% threshold for the Tier 1 common equity ratio consisting
of a minimum level plus a capital conservation buffer. BOK Financial's
Tier 1 common equity ratio based on the existing Basel I standards was
12.59% as of December 31, 2012. Our estimated Tier 1 common equity ratio
under a fully phased in Basel III framework is approximately 12.15%,
nearly 515 basis points above the 7% regulatory threshold. This estimate
is subject to interpretation of rules that are not yet final.
Additionally, the proposed definition of Tier 1 common equity includes
unrealized gains and losses on available for sale securities which will
vary based on market conditions.

Credit Quality

Nonperforming assets increased $13 million during the fourth quarter of
2012 to $277 million or 2.23% of outstanding loans and repossessed
assets at December 31, 2012. Excluding the impact of recent regulatory
guidance that primarily affected residential mortgage loans,
nonperforming assets decreased $19 million. Implementation of this
guidance increased nonperforming assets by $31 million in the fourth
quarter.

The Office of the Comptroller of the Currency issued interpretive
guidance in the third quarter of 2012 regarding accounting for and
classification of retail loans to borrowers who have filed for Chapter 7
bankruptcy. This guidance requires that these loans be charged-down to
collateral value and classified as nonaccruing and troubled debt
restructurings, regardless of current payment status. We have generally
been complying with this guidance by charging down such loans to
collateral value. Implementation of this guidance in the fourth quarter
did not significantly affect charge-offs or provision for credit losses.
Nonaccruing loans increased by approximately $19 million. At December
31, 2012, payments on approximately 65% of these newly-identified
nonaccruing loans are current. Most of this increase in nonaccruing
loans is attributed to residential mortgage loans in the Oklahoma
market. Implementation of this guidance also increased renegotiated
residential mortgage loans guaranteed by U.S. government agencies by $12
million.

Nonaccruing loans totaled $134 million or 1.09% of outstanding loans at
December 31, 2012 and $132 million or 1.11% of outstanding loans at
September 30, 2012. New nonaccruing loans identified in the fourth
quarter totaled $38 million, including $19 million identified related to
the implementation of the recent regulatory guidance on Chapter 7
bankruptcies. This was offset by $16 million in payments received, $8.0
million in charge-offs and $13 million in foreclosures and repossessions.

Nonaccruing commercial loans increased to $24 million or 0.32% of
outstanding commercial loans at December 31, 2012 from $22 million or
0.30% of outstanding commercial loans at September 30, 2012. Nonaccruing
commercial real estate loans decreased to $61 million or 2.71% of
outstanding commercial real estate loans at December 31, 2012 from $76
million or 3.50% of outstanding commercial real estate loans at
September 30, 2012. Nonaccruing commercial real estate loans consist
primarily of land development and residential construction loans.
Nonaccruing land development and residential construction loans totaled
$26 million or 10.49% of all land development and construction loans at
December 31, 2012, a decrease of $12 million during the fourth quarter.

Nonaccruing residential mortgage loans increased $17 million during the
fourth quarter of 2012 to $47 million or 2.27% of outstanding
residential mortgage loans. Principally all non-guaranteed residential
mortgage loans past due 90 days or more are nonaccruing. Residential
mortgage loans past due 30 to 89 days and still accruing interest,
excluding loans guaranteed by U.S. government agencies, totaled $11
million at December 31, 2012 and $21 million at September 30, 2012.

The combined allowance for credit losses totaled $217 million or 1.77%
of outstanding loans and 161.76% of nonaccruing loans at December 31,
2012. The allowance for loan losses was $216 million and the accrual for
off-balance sheet credit losses was $1.9 million. Gross charge-offs
continue to decrease, totaling $8.0 million for the fourth quarter,
compared to $8.9 million for the previous quarter. Recoveries totaled
$3.7 million for the fourth quarter of 2012. Net charge-offs totaled
$4.3 million or 0.14% on an annualized basis for the fourth quarter of
2012 compared with net charge-offs of $5.7 million or 0.19% on an
annualized basis for the third quarter of 2012.

After evaluating all credit factors, the Company determined that a $14
million negative provision for credit losses was necessary during the
fourth quarter of 2012. Improving trends in gross charge-offs and loan
portfolio risk grading across most loan classes resulted in lower
estimated loss rates used in developing the combined allowance for
credit losses. Most economic factors are stable or improving in our
primary markets.

Real estate and other repossessed assets totaled $104 million at
December 31, 2012, primarily consisting of $44 million of 1-4 family
residential properties (including $22 million guaranteed by U.S.
government agencies), $25 million of developed commercial real estate
properties, $18 million of undeveloped land and $16 million of
residential land and land development properties. The distribution of
real estate owned and other repossessed assets among various markets
included $29 million attributed to Arizona, $18 million attributed to
New Mexico, $16 million attributed to Texas, $15 million attributed to
Oklahoma and $13 million attributed to Colorado. Real estate and other
repossessed assets decreased by $337 thousand during the fourth quarter
of 2012. Additions of $36 million were partially offset by $33 million
of sales. Additions included $23 million and sales included $24 million
of 1-4 family residential properties guaranteed by U.S. government
agencies. Write-downs and net losses on sales of real estate and other
repossessed assets totaled $4.1 million.

Securities and Derivatives

The fair value of the available for sale securities portfolio totaled
$11.3 billion at December 31, 2012 and $11.5 billion at September 30,
2012. At December 31, 2012, the available for sale portfolio consisted
primarily of $9.9 billion of residential mortgage-backed securities
fully backed by U.S. government agencies, $895 million of commercial
mortgage-backed securities fully backed by U.S. government agencies, and
$325 million of residential mortgage-backed securities privately issued
by publicly owned financial institutions. Privately issued residential
mortgage-backed securities included $202 million backed by Jumbo-A
mortgage loans and $123 million backed by Alt-A mortgage loans. Net
unamortized premiums are less than 1% of the securities portfolio
amortized cost.

Net unrealized gains on available for sale securities totaled $255
million at December 31, 2012 and $281 million at September 30, 2012. Net
unrealized gains on residential mortgage-backed securities issued by
U.S. government agencies decreased $34 million during the fourth quarter
to $239 million at December 31, 2012. The privately issued residential
mortgage-backed securities portfolio has a net unrealized gain of $2.3
million at December 31, 2012 compared to a net unrealized loss of $5.3
million at September 30, 2012.

The amortized cost of privately issued residential mortgage-backed
securities totaled $323 million at December 31, 2012, down $14 million
since September 30, 2012. All of these securities are rated below
investment grade by at least one nationally-recognized rating agency.
The amortized cost of these securities was reduced during the fourth
quarter of 2012 by $14 million of cash payments received and $197
thousand of credit-related impairment charges during the quarter.

In the fourth quarter of 2012, the Company recognized net gains of $1.1
million from sales of $84 million of available for sale securities.
These securities were sold either because they had reached their
expected maximum potential total return or to mitigate exposure to
prepayment risk. Net gains from sales of $209 million of available for
sale securities in the third quarter of 2012 totaled $8.0 million.

The Company also maintains a portfolio of residential mortgage-backed
securities issued by U.S. government agencies and interest rate
derivative contracts designated as an economic hedge of the changes in
the fair value of our mortgage servicing rights. Due to changes in
residential mortgage interest rates during the fourth quarter of 2012,
prepayment speeds decreased and the value of our mortgage servicing
rights increased by $4.7 million. This increase was partially offset by
a $2.9 million decrease in the value of securities and interest rate
derivative contracts held as an economic hedge.

About BOK Financial Corporation

BOK Financial is a $28 billion regional financial services company based
in Tulsa, Oklahoma. The Company's stock is publicly traded on NASDAQ
under the Global Select market listings (symbol: BOKF). BOK Financial's
holdings include BOKF, NA, BOSC, Inc., The Milestone Group, Inc. and
Cavanal Hill Investment Management, Inc. BOKF, NA operates the TransFund
electronic funds network and seven banking divisions: Bank of
Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City,
Bank of Oklahoma, Bank of Texas and Colorado State Bank and Trust.
Through its subsidiaries, the Company provides commercial and consumer
banking, investment and trust services, mortgage origination and
servicing, and an electronic funds transfer network. For more
information, visit www.bokf.com.

The Company will continue to evaluate critical assumptions and
estimates, such as the adequacy of the allowance for credit losses and
asset impairment as of December 31, 2012 through the date its financial
statements are filed with the Securities and Exchange Commission and
will adjust amounts reported if necessary.

This news release contains forward-looking statements that are based on
management's beliefs, assumptions, current expectations, estimates and
projections about BOK Financial, the financial services industry and the
economy generally. Words such as “anticipates,” “believes,” “estimates,”
“expects,” “forecasts,” “plans,” “projects,” variations of such words
and similar expressions are intended to identify such forward-looking
statements. Management judgments relating to and discussion of the
provision and allowance for credit losses involve judgments as to future
events and are inherently forward-looking statements. Assessments that
BOK Financial's acquisitions and other growth endeavors will be
profitable are necessary statements of belief as to the outcome of
future events based in part on information provided by others which BOK
Financial has not independently verified. These statements are not
guarantees of future performance and involve certain risks,
uncertainties, and assumptions which are difficult to predict with
regard to timing, extent, likelihood and degree of occurrence.
Therefore, actual results and outcomes may materially differ from what
is expected, implied or forecasted in such forward-looking statements.
Internal and external factors that might cause such a difference
include, but are not limited to (1) the ability to fully realize
expected cost savings from mergers within the expected time frames, (2)
the ability of other companies on which BOK Financial relies to provide
goods and services in a timely and accurate manner, (3) changes in
interest rates and interest rate relationships, (4) demand for products
and services, (5) the degree of competition by traditional and
nontraditional competitors, (6) changes in banking regulations, tax
laws, prices, levies and assessments, (7) the impact of technological
advances and (8) trends in consumer behavior as well as their ability to
repay loans. BOK Financial and its affiliates undertake no obligation to
update, amend or clarify forward-looking statements, whether as a result
of new information, future events, or otherwise.

BALANCE SHEETS -- UNAUDITED

BOK FINANCIAL CORPORATION

(in thousands)

December 31, 2012

September 30, 2012

December 31, 2011

ASSETS

Cash and due from banks

$

1,266,834

$

596,590

$

976,191

Funds sold and resell agreements

19,405

18,904

10,174

Trading securities

214,102

204,242

76,800

Investment securities

499,534

432,114

439,236

Available for sale securities

11,287,221

11,506,434

10,179,365

Fair value option securities

284,296

331,887

651,226

Residential mortgage loans held for sale

293,762

325,102

188,125

Loans:

Commercial

7,624,420

7,273,217

6,555,070

Commercial real estate

2,233,158

2,165,526

2,291,303

Residential mortgage

2,051,354

2,018,980

1,974,527

Consumer

402,524

374,644

448,843

Total loans

12,311,456

11,832,367

11,269,743

Less allowance for loan losses

(215,507

)

(233,756

)

(253,481

)

Loans, net of allowance

12,095,949

11,598,611

11,016,262

Premises and equipment, net

265,920

259,195

262,735

Receivables

114,185

116,243

123,257

Goodwill

361,979

358,962

335,601

Intangible assets, net

28,192

33,196

10,219

Mortgage servicing rights, net

100,812

89,653

86,783

Real estate and other repossessed assets

103,791

104,128

122,753

Bankers' acceptances

605

1,605

1,881

Derivative contracts

338,106

435,653

293,859

Cash surrender value of bank-owned life insurance

274,531

271,830

263,318

Receivable on unsettled securities sales

211,052

32,480

75,151

Other assets

388,355

400,812

381,010

TOTAL ASSETS

$

28,148,631

$

27,117,641

$

25,493,946

LIABILITIES AND EQUITY

Deposits:

Demand

$

8,038,286

$

6,848,401

$

5,799,785

Interest-bearing transaction

9,888,038

9,002,567

9,354,456

Savings

284,744

269,573

226,357

Time

2,967,992

3,022,326

3,381,982

Total deposits

21,179,060

19,142,867

18,762,580

Funds purchased

1,167,416

1,680,626

1,063,318

Repurchase agreements

887,030

1,109,696

1,233,064

Other borrowings

651,775

639,254

74,485

Subordinated debentures

347,633

347,592

398,881

Accrued interest, taxes, and expense

176,678

182,410

149,508

Bankers' acceptances

605

1,605

1,881

Due on unsettled securities purchases

297,453

556,998

653,371

Derivative contracts

283,589

254,422

236,522

Other liabilities

163,711

189,696

133,684

TOTAL LIABILITIES

25,154,950

24,105,166

22,707,294

Shareholders' equity:

Capital, surplus and retained earnings

2,807,940

2,813,264

2,621,489

Accumulated other comprehensive income

149,920

162,393

128,979

TOTAL SHAREHOLDERS' EQUITY

2,957,860

2,975,657

2,750,468

Non-controlling interest

35,821

36,818

36,184

TOTAL EQUITY

2,993,681

3,012,475

2,786,652

TOTAL LIABILITIES AND EQUITY

$

28,148,631

$

27,117,641

$

25,493,946

AVERAGE BALANCE SHEETS -- UNAUDITED

BOK FINANCIAL CORPORATION

(in thousands)

Three Months Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

ASSETS

Funds sold and resell agreements

$

19,553

$

17,837

$

19,187

$

11,385

$

12,035

Trading securities

165,109

132,213

143,770

95,293

97,972

Investment securities

474,085

408,646

416,284

430,890

443,326

Available for sale securities

11,482,212

11,058,055

10,091,279

9,947,227

9,914,523

Fair value option securities

292,490

336,160

335,965

555,233

660,025

Residential mortgage loans held for sale

272,581

264,024

191,311

182,372

201,242

Loans:

Commercial

7,424,922

7,216,232

7,075,871

6,882,277

6,502,981

Commercial real estate

2,174,726

2,148,559

2,133,247

2,198,832

2,256,153

Residential mortgage

1,997,679

2,003,162

2,011,729

1,944,462

1,949,929

Consumer

391,992

371,709

393,875

411,240

443,252

Total loans

11,989,319

11,739,662

11,614,722

11,436,811

11,152,315

Less allowance for loan losses

(229,095

)

(231,177

)

(242,605

)

(252,538

)

(266,473

)

Total loans, net

11,760,224

11,508,485

11,372,117

11,184,273

10,885,842

Total earning assets

24,466,254

23,725,420

22,569,913

22,406,673

22,214,965

Cash and due from banks

849,614

746,364

748,811

908,628

1,234,312

Cash surrender value of bank-owned life insurance

272,778

270,084

267,246

264,354

261,496

Derivative contracts

316,579

291,965

371,690

311,178

247,411

Other assets

1,591,551

1,554,339

1,580,857

1,625,750

1,679,256

TOTAL ASSETS

$

27,496,776

$

26,588,172

$

25,538,517

$

25,516,583

$

25,637,440

LIABILITIES AND EQUITY

Deposits:

Demand

$

7,505,074

$

6,718,572

$

6,278,342

$

5,847,682

$

5,588,596

Interest-bearing transaction

9,343,421

8,719,648

8,779,659

9,319,978

9,276,608

Savings

278,714

267,498

259,386

241,442

220,236

Time

3,010,367

3,068,870

3,132,220

3,246,362

3,485,059

Total deposits

20,137,576

18,774,588

18,449,607

18,655,464

18,570,499

Funds purchased

1,295,442

1,678,006

1,740,354

1,337,614

1,197,154

Repurchase agreements

900,131

1,112,847

1,095,298

1,183,778

1,189,861

Other borrowings

364,425

97,003

86,667

72,911

88,489

Subordinated debentures

347,613

352,432

357,609

397,440

398,858

Derivative contracts

246,296

247,148

302,329

207,864

180,623

Other liabilities

1,233,806

1,378,956

637,920

826,279

1,241,469

TOTAL LIABILITIES

24,525,289

23,640,980

22,669,784

22,681,350

22,866,953

Total equity

2,971,487

2,947,192

2,868,733

2,835,233

2,770,487

TOTAL LIABILITIES AND EQUITY

$

27,496,776

$

26,588,172

$

25,538,517

$

25,516,583

$

25,637,440

STATEMENTS OF EARNINGS -- UNAUDITED

BOK FINANCIAL CORPORATION

(in thousands, except per share data)

Three Months Ended

Year Ended

December 31,

December 31,

2012

2011

2012

2011

Interest revenue

$

194,314

$

198,040

$

791,648

$

811,595

Interest expense

20,945

26,570

87,322

120,101

Net interest revenue

173,369

171,470

704,326

691,494

Provision for credit losses

(14,000

)

(15,000

)

(22,000

)

(6,050

)

Net interest revenue after provision for credit losses

187,369

186,470

726,326

697,544

Other operating revenue:

Brokerage and trading revenue

31,958

25,629

126,930

104,181

Transaction card revenue

28,009

25,960

107,985

116,757

Trust fees and commissions

22,030

17,865

80,053

73,290

Deposit service charges and fees

24,174

24,921

98,917

95,872

Mortgage banking revenue

46,410

25,438

169,302

91,643

Bank-owned life insurance

2,673

2,784

11,089

11,280

Other revenue

10,554

9,189

37,827

35,620

Total fees and commissions

165,808

131,786

632,103

528,643

Gain (loss) on other assets, net

137

1,682

(1,415

)

4,156

Gain (loss) on derivatives, net

(637

)

(174

)

(301

)

2,686

Gain (loss) on fair value option securities, net

(2,081

)

222

9,230

24,413

Gain on available for sale securities, net

1,066

7,080

33,845

34,144

Total other-than-temporary impairment losses

(504

)

(1,037

)

(1,144

)

(10,578

)

Portion of loss recognized in (reclassified from) othercomprehensive
income

(1,163

)

(1,747

)

(6,207

)

(12,929

)

Net impairment losses recognized in earnings

(1,667

)

(2,784

)

(7,351

)

(23,507

)

Total other operating revenue

162,626

137,812

666,111

570,535

Other operating expense:

Personnel

131,192

121,129

491,033

429,986

Business promotion

6,150

5,868

23,338

20,549

Contribution to BOKF Charitable Foundation

2,062

—

2,062

4,000

Professional fees and services

10,082

7,664

34,015

28,798

Net occupancy and equipment

16,883

16,826

66,726

64,611

Insurance

3,789

3,636

15,356

16,799

Data processing and communications

25,010

26,599

98,904

97,976

Printing, postage and supplies

3,403

3,637

14,228

14,085

Net losses and operating expenses of repossessed assets

6,665

6,180

20,528

23,715

Amortization of intangible assets

1,065

895

2,927

3,583

Mortgage banking costs

8,653

10,154

38,965

34,942

Change in fair value of mortgage servicing rights

(4,689

)

5,261

9,210

40,447

Other expense

11,820

11,133

32,281

40,253

Total other operating expense

222,085

218,982

849,573

819,744

Net income before taxes

127,910

105,300

542,864

448,335

Federal and state income taxes

44,293

37,396

188,740

158,511

Net income

83,617

67,904

354,124

289,824

Net income attributable to non-controlling interest

1,051

911

2,933

3,949

Net income attributable to BOK Financial Corporation shareholders

$

82,566

$

66,993

$

351,191

$

285,875

Average shares outstanding:

Basic

67,622,777

67,526,009

67,684,043

67,787,676

Diluted

67,914,717

67,774,721

67,964,940

68,038,763

Net income per share:

Basic

$

1.21

$

0.98

$

5.15

$

4.18

Diluted

$

1.21

$

0.98

$

5.13

$

4.17

FINANCIAL HIGHLIGHTS -- UNAUDITED

BOK FINANCIAL CORPORATION

(in thousands, except ratio and share data)

Three Months Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Capital:

Period-end shareholders' equity

$

2,957,860

$

2,975,657

$

2,885,934

$

2,834,419

$

2,750,468

Risk weighted assets

$

19,016,673

$

18,448,854

$

17,758,118

$

17,993,379

$

17,291,105

Risk-based capital ratios:

Tier 1

12.78

%

13.21

%

13.62

%

13.03

%

13.27

%

Total capital

15.13

%

15.71

%

16.19

%

16.16

%

16.49

%

Leverage ratio

9.01

%

9.34

%

9.64

%

9.35

%

9.15

%

Tangible common equity ratio1

9.25

%

9.67

%

10.07

%

9.75

%

9.56

%

Tier 1 common equity ratio2

12.59

%

13.01

%

13.41

%

12.83

%

13.06

%

Common stock:

Book value per share

$

43.29

$

43.62

$

42.35

$

41.61

$

40.36

Market value per share:

High

$

59.77

$

59.47

$

58.12

$

59.02

$

55.90

Low

$

54.19

$

55.63

$

53.34

$

52.56

$

45.68

Cash dividends paid

$

94,231

$

25,912

$

25,904

$

22,571

$

22,451

Dividend payout ratio

114.13

%

29.65

%

26.53

%

26.99

%

33.51

%

Shares outstanding, net

68,327,351

68,215,354

68,144,159

68,116,893

68,153,044

Stock buy-back program:

Shares repurchased

—

—

39,496

345,300

69,581

Amount

$

—

$

—

$

2,125

$

18,432

$

3,579

Average price per share

$

—

$

—

$

53.81

$

53.38

$

51.44

Performance ratios (quarter annualized):

Return on average assets

1.19

%

1.31

%

1.54

%

1.32

%

1.04

%

Return on average equity

11.05

%

11.80

%

13.69

%

11.86

%

9.59

%

Net interest margin

2.95

%

3.12

%

3.30

%

3.19

%

3.20

%

Efficiency ratio

66.00

%

61.18

%

61.98

%

58.76

%

69.66

%

Reconciliation of non-GAAP measures:

1 Tangible common equity ratio:

Total shareholders' equity

$

2,957,860

$

2,975,657

$

2,885,934

$

2,834,419

$

2,750,468

Less: Goodwill and intangibleassets, net

(390,171

)

(392,158

)

(344,699

)

(345,246

)

(345,820

)

Tangible common equity

$

2,567,689

$

2,583,499

$

2,541,235

$

2,489,173

$

2,404,648

Total assets

$

28,148,631

$

27,117,641

$

25,576,046

$

25,884,173

$

25,493,946

Less: Goodwill and intangibleassets, net

(390,171

)

(392,158

)

(344,699

)

(345,246

)

(345,820

)

Tangible assets

$

27,758,460

$

26,725,483

$

25,231,347

$

25,538,927

$

25,148,126

Tangible common equity ratio

9.25

%

9.67

%

10.07

%

9.75

%

9.56

%

2 Tier 1 common equity ratio:

Tier 1 capital

$

2,430,671

$

2,436,791

$

2,418,985

$

2,344,779

$

2,295,061

Less: Non-controlling interest

(35,821

)

(36,818

)

(36,787

)

(35,982

)

(36,184

)

Tier 1 common equity

$

2,394,850

$

2,399,973

$

2,382,198

$

2,308,797

$

2,258,877

Risk weighted assets

$

19,016,673

$

18,448,854

$

17,758,118

$

17,993,379

$

17,291,105

Tier 1 common equity ratio

12.59

%

13.01

%

13.41

%

12.83

%

13.06

%

FINANCIAL HIGHLIGHTS -- UNAUDITED

BOK FINANCIAL CORPORATION

(in thousands, except ratio and share data)

Three Months Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Other data:

Fiduciary assets

$

25,829,038

$

25,208,276

$

23,136,625

$

23,774,788

$

22,821,813

Mortgage servicing portfolio

$

11,981,624

$

11,756,350

$

11,564,643

$

11,378,806

$

11,300,986

Mortgage loans funded for sale

$

1,073,541

$

1,046,608

$

841,960

$

746,241

$

753,215

Mortgage loan refinances to total

fundings

62

%

61

%

51

%

67

%

66

%

Tax equivalent adjustment

$

2,472

$

2,509

$

2,252

$

2,094

$

2,274

Net unrealized gain on available

for sale securities

$

254,587

$

281,455

$

242,253

$

277,277

$

222,160

Gain (loss) on mortgage servicing rights, net of economic hedge:

Gain (loss) on mortgage hedge

derivative contracts

$

(707

)

$

645

$

2,623

$

(2,445

)

$

121

Gain (loss) on mortgage trading

securities

(2,177

)

5,455

6,908

(2,393

)

222

Gain (loss) on economic hedge of

mortgage servicing rights

(2,884

)

6,100

9,531

(4,838

)

343

Gain (loss) on changes in fair

value of mortgage servicing rights

4,689

(9,576

)

(11,450

)

7,127

(5,261

)

Gain (loss) on changes in fair

value of mortgage servicing

rights, net of economic hedges

$

1,805

$

(3,476

)

$

(1,919

)

$

2,289

$

(4,918

)

Net interest revenue on mortgage

trading securities

$

748

$

1,750

$

2,148

$

3,165

$

4,436

QUARTERLY EARNINGS TREND -- UNAUDITED

BOK FINANCIAL CORPORATION

(in thousands, except ratio and per share data)

Three Months Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Interest revenue

$

194,314

$

196,071

$

203,055

$

198,208

$

198,040

Interest expense

20,945

20,044

21,694

24,639

26,570

Net interest revenue

173,369

176,027

181,361

173,569

171,470

Provision for credit losses

(14,000

)

—

(8,000

)

—

(15,000

)

Net interest revenue after provision for credit

losses

187,369

176,027

189,361

173,569

186,470

Other operating revenue:

Brokerage and trading revenue

31,958

31,261

32,600

31,111

25,629

Transaction card revenue

28,009

27,788

26,758

25,430

25,960

Trust fees and commissions

22,030

19,654

19,931

18,438

17,865

Deposit service charges and fees

24,174

25,148

25,216

24,379

24,921

Mortgage banking revenue

46,410

50,266

39,548

33,078

25,438

Bank-owned life insurance

2,673

2,707

2,838

2,871

2,784

Other revenue

10,554

9,149

8,860

9,264

9,189

Total fees and commissions

165,808

165,973

155,751

144,571

131,786

Gain (loss) on other assets, net

137

452

1,689

(3,693

)

1,682

Gain (loss) on derivatives, net

(637

)

464

2,345

(2,473

)

(174

)

Gain (loss) on fair value option securities, net

(2,081

)

6,192

6,852

(1,733

)

222

Gain on available for sale securities, net

1,066

7,967

20,481

4,331

7,080

Total other-than-temporary impairment losses

(504

)

—

(135

)

(505

)

(1,037

)

Portion of loss recognized in (reclassified from)

other comprehensive income

(1,163

)

(1,104

)

(723

)

(3,217

)

(1,747

)

Net impairment losses recognized in earnings

(1,667

)

(1,104

)

(858

)

(3,722

)

(2,784

)

Total other operating revenue

162,626

179,944

186,260

137,281

137,812

Other operating expense:

Personnel

131,192

122,775

122,297

114,769

121,129

Business promotion

6,150

6,054

6,746

4,388

5,868

Contribution to BOKF Charitable Foundation

2,062

—

—

—

—

Professional fees and services

10,082

7,991

8,343

7,599

7,664

Net occupancy and equipment

16,883

16,914

16,906

16,023

16,826

Insurance

3,789

3,690

4,011

3,866

3,636

Data processing and communications

25,010

26,486

25,264

22,144

26,599

Printing, postage and supplies

3,403

3,611

3,903

3,311

3,637

Net losses and operating expenses of

repossessed assets

6,665

5,706

5,912

2,245

6,180

Amortization of intangible assets

1,065

742

545

575

895

Mortgage banking costs

8,653

11,566

11,173

7,573

10,154

Change in fair value of mortgage servicing

rights

(4,689

)

9,576

11,450

(7,127

)

5,261

Other expense

11,820

7,229

6,461

6,771

11,133

Total other operating expense

222,085

222,340

223,011

182,137

218,982

Net income before taxes

127,910

133,631

152,610

128,713

105,300

Federal and state income taxes

44,293

45,778

53,149

45,520

37,396

Net income

83,617

87,853

99,461

83,193

67,904

Net income (loss) attributable to non-controlling

interest

1,051

471

1,833

(422

)

911

Net income attributable to BOK Financial

Corporation shareholders

$

82,566

$

87,382

$

97,628

$

83,615

$

66,993

Average shares outstanding:

Basic

67,622,777

67,966,700

67,472,665

67,665,300

67,526,009

Diluted

67,914,717

68,334,989

67,744,828

67,941,895

67,774,721

Net income per share:

Basic

$

1.21

$

1.28

$

1.43

$

1.22

$

0.98

Diluted

$

1.21

$

1.27

$

1.43

$

1.22

$

0.98

LOANS BY PRINCIPAL MARKET AREA -- UNAUDITED

BOK FINANCIAL CORPORATION

(in thousands)

Three Months Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Bank of Oklahoma:

Commercial

$

3,273,833

$

3,141,217

$

3,098,651

$

3,107,726

$

2,826,649

Commercial real estate

636,398

639,156

644,761

631,891

607,030

Residential mortgage

1,501,000

1,477,583

1,460,173

1,426,827

1,411,560

Consumer

227,115

200,217

205,436

215,693

235,909

Total Bank of Oklahoma

5,638,346

5,458,173

5,409,021

5,382,137

5,081,148

Bank of Texas:

Commercial

2,654,875

2,529,473

2,414,824

2,354,593

2,249,888

Commercial real estate

771,791

712,895

678,745

802,979

830,642

Residential mortgage

274,388

266,791

268,639

262,556

268,053

Consumer

116,252

108,854

115,602

124,692

126,570

Total Bank of Texas

3,817,306

3,618,013

3,477,810

3,544,820

3,475,153

Bank of Albuquerque:

Commercial

255,382

267,469

262,144

273,284

258,668

Commercial real estate

305,049

294,731

285,871

282,834

303,500

Residential mortgage

128,201

117,783

113,987

106,754

104,695

Consumer

15,456

15,883

15,828

18,378

19,369

Total Bank of Albuquerque

704,088

695,866

677,830

681,250

686,232

Bank of Arkansas:

Commercial

62,049

48,097

49,305

64,595

76,199

Commercial real estate

90,821

119,305

119,895

139,670

136,170

Residential mortgage

12,684

12,408

12,513

14,557

15,772

Consumer

15,421

19,720

24,270

28,783

35,911

Total Bank of Arkansas

180,975

199,530

205,983

247,605

264,052

Colorado State Bank & Trust:

Commercial

649,203

616,321

610,384

541,280

544,020

Commercial real estate

160,344

145,077

149,541

144,757

156,013

Residential mortgage

57,712

57,637

60,893

61,329

64,627

Consumer

19,333

19,028

20,612

19,790

21,598

Total Colorado State Bank & Trust

886,592

838,063

841,430

767,156

786,258

Bank of Arizona:

Commercial

313,294

300,557

278,119

269,099

271,914

Commercial real estate

184,290

186,553

181,513

180,830

198,160

Residential mortgage

57,559

65,234

67,822

76,699

89,315

Consumer

4,686

6,150

6,227

5,381

5,633

Total Bank of Arizona

559,829

558,494

533,681

532,009

565,022

Bank of Kansas City:

Commercial

415,784

370,083

339,117

348,515

327,732

Commercial real estate

84,465

67,809

65,888

50,722

59,788

Residential mortgage

19,810

21,544

21,070

19,650

20,505

Consumer

4,261

4,792

4,601

3,580

3,853

Total Bank of Kansas City

524,320

464,228

430,676

422,467

411,878

TOTAL BOK FINANCIAL

$

12,311,456

$

11,832,367

$

11,576,431

$

11,577,444

$

11,269,743

Loans attributed to a geographical region may not always represent the
location of the borrower or the collateral.

DEPOSITS BY PRINCIPAL MARKET AREA -- UNAUDITED

BOK FINANCIAL CORPORATION

(in thousands)

Three Months Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Bank of Oklahoma:

Demand

$

4,223,923

$

3,734,900

$

3,499,834

$

3,445,424

$

3,223,201

Interest-bearing:

Transaction

6,031,541

5,496,724

5,412,002

5,889,625

6,050,986

Savings

163,512

155,277

150,353

148,556

126,763

Time

1,267,904

1,274,336

1,354,148

1,370,868

1,450,571

Total interest-bearing

7,462,957

6,926,337

6,916,503

7,409,049

7,628,320

Total Bank of Oklahoma

11,686,880

10,661,237

10,416,337

10,854,473

10,851,521

Bank of Texas:

Demand

2,606,176

1,983,678

1,966,465

1,876,133

1,808,491

Interest-bearing:

Transaction

2,129,084

1,782,296

1,813,209

1,734,655

1,940,819

Savings

58,429

52,561

51,114

50,331

45,872

Time

762,233

789,725

772,809

789,860

867,664

Total interest-bearing

2,949,746

2,624,582

2,637,132

2,574,846

2,854,355

Total Bank of Texas

5,555,922

4,608,260

4,603,597

4,450,979

4,662,846

Bank of Albuquerque:

Demand

427,510

416,796

357,367

333,707

319,269

Interest-bearing:

Transaction

511,593

526,029

506,165

503,015

491,068

Savings

31,926

31,940

31,215

32,688

27,487

Time

364,928

375,611

383,350

392,234

410,722

Total interest-bearing

908,447

933,580

920,730

927,937

929,277

Total Bank of Albuquerque

1,335,957

1,350,376

1,278,097

1,261,644

1,248,546

Bank of Arkansas:

Demand

38,935

29,254

16,921

22,843

18,513

Interest-bearing:

Transaction

101,366

168,827

172,829

151,708

131,181

Savings

2,239

2,246

2,220

2,358

1,727

Time

42,573

45,719

48,517

54,157

61,329

Total interest-bearing

146,178

216,792

223,566

208,223

194,237

Total Bank of Arkansas

185,113

246,046

240,487

231,066

212,750

Colorado State Bank & Trust:

Demand

331,157

330,641

301,646

311,057

272,565

Interest-bearing:

Transaction

676,140

627,015

465,276

476,718

511,993

Savings

25,889

24,689

24,202

23,409

22,771

Time

472,305

476,564

491,280

498,124

523,969

Total interest-bearing

1,174,334

1,128,268

980,758

998,251

1,058,733

Total Colorado State Bank & Trust

1,505,491

1,458,909

1,282,404

1,309,308

1,331,298

Bank of Arizona:

Demand

161,094

151,738

137,313

131,539

106,741

Interest-bearing:

Transaction

360,275

298,048

113,310

95,010

104,961

Savings

1,978

2,201

2,313

1,772

1,192

Time

31,371

33,169

31,539

34,199

37,641

Total interest-bearing

393,624

333,418

147,162

130,981

143,794

Total Bank of Arizona

554,718

485,156

284,475

262,520

250,535

Bank of Kansas City:

Demand

249,491

201,393

160,829

68,469

51,004

Interest-bearing:

Transaction

78,039

103,628

69,083

57,666

123,449

Savings

771

660

581

505

545

Time

26,678

27,202

26,307

26,657

30,086

Total interest-bearing

105,488

131,490

95,971

84,828

154,080

Total Bank of Kansas City

354,979

332,883

256,800

153,297

205,084

TOTAL BOK FINANCIAL

$

21,179,060

$

19,142,867

$

18,362,197

$

18,523,287

$

18,762,580

NET INTEREST MARGIN TREND -- UNAUDITED

BOK FINANCIAL CORPORATION

Three Months Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

TAX-EQUIVALENT ASSETS YIELDS

Funds sold and resell agreements

0.06

%

0.07

%

0.08

%

0.07

%

0.10

%

Trading securities

1.06

%

2.12

%

1.53

%

1.88

%

2.79

%

Investment securities:

Taxable1

5.86

%

5.83

%

5.93

%

5.89

%

5.91

%

Tax-exempt1

2.93

%

4.12

%

4.90

%

4.87

%

4.81

%

Total investment securities1

4.67

%

5.33

%

5.63

%

5.59

%

5.59

%

Available for sale securities:

Taxable1

2.08

%

2.36

%

2.52

%

2.48

%

2.37

%

Tax-exempt1

3.80

%

4.70

%

4.69

%

5.17

%

5.14

%

Total available for sale securities1

2.10

%

2.38

%

2.54

%

2.50

%

2.39

%

Fair value option securities

1.58

%

2.27

%

2.62

%

2.79

%

2.98

%

Residential mortgage loans held for sale

3.39

%

3.48

%

3.75

%

3.90

%

4.01

%

Loans

4.33

%

4.33

%

4.58

%

4.50

%

4.65

%

Less allowance for loan losses

—

—

—

—

—

Loans, net of allowance

4.41

%

4.42

%

4.68

%

4.61

%

4.76

%

Total tax-equivalent yield on earning assets1

3.30

%

3.47

%

3.69

%

3.64

%

3.69

%

COST OF INTEREST-BEARING LIABILITIES

Interest-bearing deposits:

Interest-bearing transaction

0.15

%

0.16

%

0.16

%

0.17

%

0.18

%

Savings

0.18

%

0.19

%

0.23

%

0.24

%

0.26

%

Time

1.80

%

1.61

%

1.63

%

1.68

%

1.70

%

Total interest-bearing deposits

0.54

%

0.53

%

0.54

%

0.55

%

0.59

%

Funds purchased

0.15

%

0.15

%

0.16

%

0.09

%

0.06

%

Repurchase agreements

0.09

%

0.10

%

0.10

%

0.09

%

0.13

%

Other borrowings

0.90

%

3.03

%

3.96

%

5.58

%

4.75

%

Subordinated debt

2.56

%

2.79

%

3.95

%

5.62

%

5.61

%

Total cost of interest-bearing liabilities

0.54

%

0.52

%

0.56

%

0.63

%

0.66

%

Tax-equivalent net interest revenue spread

2.76

%

2.95

%

3.13

%

3.01

%

3.03

%

Effect of noninterest-bearing funding sources and other

0.19

%

0.17

%

0.17

%

0.18

%

0.17

%

Tax-equivalent net interest margin1

2.95

%

3.12

%

3.30

%

3.19

%

3.20

%

1 Yield calculations exclude security trades that have been recorded on
trade date with no corresponding interest income.

CREDIT QUALITY INDICATORS

BOK FINANCIAL CORPORATION

(in thousands, except ratios)

Quarter Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Nonperforming assets:

Nonaccruing loans:

Commercial

$

24,467

$

21,762

$

34,529

$

61,750

$

68,811

Commercial real estate

60,626

75,761

80,214

86,475

99,193

Residential mortgage

46,608

29,267

22,727

27,462

29,767

Consumer

2,709

5,109

7,012

7,672

3,515

Total nonaccruing loans

134,410

131,899

144,482

183,359

201,286

Renegotiated loans1

38,515

27,992

28,415

36,764

32,893

Real estate and other repossessed assets

103,791

104,128

105,708

115,790

122,753

Total nonperforming assets

$

276,716

$

264,019

$

278,605

$

335,913

$

356,932

Nonaccruing loans by principal market2:

Bank of Oklahoma

$

56,424

$

41,599

$

49,931

$

64,097

$

65,261

Bank of Texas

31,623

28,046

24,553

29,745

28,083

Bank of Albuquerque

13,401

13,233

13,535

15,029

15,297

Bank of Arkansas

1,132

5,958

6,865

18,066

23,450

Colorado State Bank & Trust

14,364

22,878

28,239

28,990

33,522

Bank of Arizona

17,407

20,145

21,326

27,397

35,673

Bank of Kansas City

59

40

33

35

—

Total nonaccruing loans

$

134,410

$

131,899

$

144,482

$

183,359

$

201,286

Nonaccruing loans by loan portfolio sector:

Commercial:

Energy

$

2,460

$

3,063

$

3,087

$

336

$

336

Manufacturing

2,007

2,283

12,230

23,402

23,051

Wholesale / retail

3,077

2,007

4,175

15,388

21,180

Integrated food services

684

—

—

—

—

Services

12,090

10,099

10,123

12,890

16,968

Healthcare

3,166

3,305

3,310

7,946

5,486

Other commercial and industrial

983

1,005

1,604

1,788

1,790

Total commercial

24,467

21,762

34,529

61,750

68,811

Commercial real estate:

Construction and land development

26,131

38,143

46,050

52,416

61,874

Retail

8,117

6,692

7,908

6,193

6,863

Office

6,829

9,833

10,589

10,733

11,457

Multifamily

2,706

3,145

3,219

3,414

3,513

Industrial

3,968

4,064

—

—

—

Other commercial real estate

12,875

13,884

12,448

13,719

15,486

Total commercial real estate

60,626

75,761

80,214

86,475

99,193

CREDIT QUALITY INDICATORS

BOK FINANCIAL CORPORATION

(in thousands, except ratios)

Quarter Ended

December 31, 2012

September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Residential mortgage:

Permanent mortgage

39,863

23,717

18,136

22,822

25,366

Permanent mortgage guaranteed by U.S. government agencies

489

—

—

—

—

Home equity

6,256

5,550

4,591

4,640

4,401

Total residential mortgage

46,608

29,267

22,727

27,462

29,767

Consumer

2,709

5,109

7,012

7,672

3,515

Total nonaccruing loans

$

134,410

$

131,899

$

144,482

$

183,359

$

201,286

Performing loans 90 days past due3

$

3,925

$

1,181

$

691

$

6,140

$

2,496

Gross charge-offs

$

8,000

$

8,921

$

11,543

$

13,674

$

14,771

Recoveries

3,724

3,204

4

6,702

5,189

5,311

Net charge-offs

$

4,276

$

5,717

$

4,841

$

8,485

$

9,460

Provision for (reduction of) allowances for credit losses

$

(14,000

)

$

—

$

(8,000

)

$

—

$

(15,000

)

Allowance for loan losses to period end loans

1.75

%

1.98

%

2.00

%

2.11

%

2.25

%

Combined allowance for credit losses to period end loans

1.77

%

1.99

%

2.09

%

2.20

%

2.33

%

Nonperforming assets to period end loans and repossessed assets

2.23

%

2.21

%

2.38

%

2.87

%

3.13

%

Net charge-offs (annualized) to average loans

0.14

%

0.19

%

4

0.17

%

0.30

%

0.34

%

Allowance for loan losses to nonaccruing loans

160.34

%

177.22

%

160.34

%

133.19

%

125.93

%

Combined allowance for credit losses to nonaccruing loans

161.76

%

178.70

%

167.09

%

138.67

%

130.53

%

1

Includes residential mortgage loans guaranteed by agencies of the
U.S. government. These loans have been modified to extend payment
terms and/or reduce interest rates to current market.

$

38,515

$

24,590

$

24,760

$

32,770

$

28,974

2

Nonaccruing loans attributed to a principal market do not always
represent the location of the borrower or the collateral.

3

Excludes residential mortgage loans guaranteed by agencies of the
U.S. government.

4

Includes $7.1 million of negative recovery related to a refund of
a settlement agreement between BOK Financial and the City of Tulsa
invalidated by the Oklahoma Supreme Court. Excluding this refund,
BOK Financial had net charge-offs (recoveries) to average loans of
(0.05%) on an annualized basis.